Section 43B: Power to make declaration

43B. Power to make declaration.--(1) Where the State Bank, after making such inquiries as it may deem fit, is of opinion that a company 1[,firm] or person referred to in section 43A is transacting in any manner or form whatsoever the business of banking in contravention of sub-section (1) of section 27, 1[or is receiving or has received deposits of money in contravention of section 27A] the State Bank may, after giving the company 1[,firm] or such person an opportunity of showing cause against the proposed action being taken, make a declaration to that effect [:]1 1[Provided that, in a case in which the State Bank has made an order under sub-section (1) of section 43AA in respect of a company, firm or person, the State Bank shall make a declaration under this sub-section in respect of such company, firm or person within three months of the making of such order or within such further time, not exceeding three months in the aggregate, as the High Court may allow, or withdraw such order.] 1[(2) The State bank shall publish, or cause to be published, a declaration made under sub- section (1) in two newspapers having wide circulation in the area in which the registered office of the company or firm, or the principal office of the person, to which or to whom the declaration relates is situated; and, upon such publication, the company, firm or such person or the chief executive, by whatever name called, or directors, managers, officers, employees or agents of the company or partners, managers, officers, employees or agents of the firm, or such person, or any other person referred to in sub-sections (1), (3) or (4) of section 43D or section 43E, shall not be heard to plead ignorance of the making of the declaration.] (3) A declaration under sub-section (1) shall, for the purposes of this Part, be conclusive proof of the fact stated therein.

Effective date: 1962-06-07

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